Competition and Growth: Reinterpreting their Relationship

No 1324, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: In this paper we modify a standard quality ladder model by assuming that R&D is driven by outsider firms and the winners of the race sell licenses over their patents, instead of entering directly the intermediate good sector. As a reward they get the aggregate profit of the industry. Moreover, in the intermediate good sector firms compete à la Cournot and it is assumed that there are spillovers represented by strategic complementarities on costs. We prove that there exists an interval of values of the spillover parameter such that the relationship between competition and growth is an inverted-U-shape.

Keywords: quality ladder; Cournot oligopoly; strategic complementarities; competition (search for similar items in EconPapers)
JEL-codes: L13 L16 O31 O52 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2013-04-02
New Economics Papers: this item is included in nep-com, nep-cse, nep-ind and nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.amse-aixmarseille.fr/sites/default/file ... g-their-relationship (application/pdf)

Related works:
Journal Article: Competition and Growth: Reinterpreting their Relationship (2015)
Working Paper: Competition and Growth: Reinterpreting their Relationship (2013)
Working Paper: Competition and growth: reinterpreting their relationship (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aim:wpaimx:1324

Access Statistics for this paper

More papers in AMSE Working Papers from Aix-Marseille School of Economics, France AMU-AMSE - 5-9 Boulevard Maurice Bourdet, CS 50498 - 13205 Marseille Cedex 1. Contact information at EDIRC.
Bibliographic data for series maintained by Gregory Cornu ().